JAPANESE WARN OF JEXIT

The Japanese government has delivered a 15 page memo to the UK government and the EU warning that many Japanese firms will consider moving their European headquarters to the continent, "if EU laws cease to be applicable in the UK after its withdrawal" (The BBC HERE) and The Independent (HERE).

It is almost certain that EU laws will NOT be applicable after we exit. The letter (HERE) warns of "dire consequences for the interests of the world if an open Europe cannot be maintained" and calls for tariff free access to the single market and continued freedom of movement as well as passporting rights for their financial institutions.  The letter is a response to concerns expressed by Japanese companies to their own government.

I was surprised to see that 1000 Japanese companies have operations here employing 140,000 people directly and presumably more in the supply chains.  No doubt Brexiteers will resent this intrusion but the letter, it seems to me, is a logical response to Brexit. The stakes could not be higher.  

Some EU countries will be quite happy with the threat to move operations to them. And remember this is only Japanese companies. Others will no doubt be thinking the same things. The EU hold all the cards and I can't see how we will avoid conceding almost everything to keep the companies we have here now and attract others in the future.